Etsy Dips as Robeco Sells $109 Million Stake

Robeco Cuts its Stake by 6.7%

Robeco Institutional Asset Management B.V. has sold approximately 3.59 million shares of Etsy, Inc. (NASDAQ: ETSY), according to a recent SEC filing. The sale represents approximately 6.7% of Robeco's stake in Etsy. Following the transaction, Robeco now owns approximately 50.4 million shares, or 30.8% of Etsy's outstanding shares.

Impact on Etsy Stock

The sale of shares by Robeco has had a negative impact on Etsy's stock price. In the wake of the news, Etsy shares fell by approximately 3%, closing at $78.46 on February 13, 2023. The decline in Etsy's stock price may reflect investor concerns about the long-term prospects of the company.

Robeco's Decision

Robeco's decision to sell a portion of its Etsy stake may have been influenced by a number of factors, including the company's recent financial performance. In the fourth quarter of 2022, Etsy reported a net loss of $91.7 million, compared to a net income of $120.9 million in the same period a year earlier. The company also reported a decline in its monthly active user base, which fell from 96.3 million in December 2021 to 90.6 million in December 2022.

Analysts have expressed concerns about Etsy's ability to sustain its growth in the face of increasing competition from larger e-commerce platforms such as Amazon and Walmart. It is possible that Robeco's sale of Etsy shares reflects these concerns.

Conclusion

The sale of Etsy shares by Robeco is a significant development that may have implications for the company's future. Investors should carefully consider the reasons for Robeco's decision and the potential impact on Etsy's stock price before making any investment decisions.